>An application is built with VB as frontend and connects through ADO to a VFP backend.

First off, why did you choose to do it this way? The reason I ask is, if we know why you did it this way in the first place, we can suggest which one of your solutions (most likely 2 or 3) you will be happier with.

Keep in mind you can also go to MSDE instead of straight to SQL Server.